Vulnerable clients, vulnerable business

Paul began by providing us with some simple numbers on clients – 64 being the average age of a Quilter Cheviot Client. He noted that this too, is likely to be the average age of many financial adviser clients. Paul then showed us statistics on life expectancy as well as ‘healthy’ life expectancy figures which demonstrated that all of our financial planning tends to come into fruition when people are in retirement and thus, statistically in poorer health. This means that we will have a lot of clients who may need additional guidance as they become less capable. This demonstrates the importance of having a later life planning process in place.

Paul detailed some facts about Alzheimer’s, as the most common type of dementia. He explained that it affects coordination, memory and speech. Because of this, it can make people forget the financial planning details. This highlighted the importance of understanding the condition so that we can better communicate with our clients, resulting in a much better outcome for all.

Highlighted throughout the presentation was the need for a ‘vulnerable client process’ to be in place. This should incorporate formalising a relevant person that can be contacted if necessary, training staff on how to communicate with vulnerable clients and so on. It highlighted the importance of knowing your client, their family and their wishes.

Paul noted that vulnerability, and dementia in particular, doesn’t just affect older clients, people of all ages can suffer and there is no cure at this point in time. It’s therefore important to talk about client wishes early on in the advice process and keeping records of client wishes.

Paul closed the presentation by highlighting the benefits of having a solid and appropriate plan in place for vulnerable clients. By providing quality advice and demonstrating client care, it opens up links to other professionals, other clients and the next generation of clients.